Question: Variable costing is a managerial tool. a. Its proponents insist that it is more accurate than absorption costing and that it is critical to managerial

Variable costing is a managerial tool.

a. Its proponents insist that it is more accurate than absorption costing and that it is critical to managerial decisions about costs, volume, and profits.

b. Its critics argue that it is a tactical decision-making tool, useful only for making short-run decisions.

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